Stitch Fix (NASDAQ:SFIX) Shares Up 8.3% - Here's Why

Key Points

• Stitch Fix shares rose by 8.3% during trading, closing at $4.89 after previously closing at $4.51, although trading volume was significantly lower than average.
• Wall Street analysts have a consensus average rating of "Hold" for Stitch Fix, with an average target price of $5.67, following various upgrades and downgrades from different analysts.
• Insider transactions revealed significant share sales, with insiders selling a total of 2,177,317 shares worth approximately $10.5 million over the last three months.

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report)'s share price rose 8.3% on Tuesday . The stock traded as high as $4.79 and last traded at $4.89. Approximately 272,785 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 2,192,899 shares. The stock had previously closed at $4.51.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Zacks Research raised shares of Stitch Fix to a "hold" rating in a research report on Monday, August 11th. Wall Street Zen cut shares of Stitch Fix from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. William Blair raised shares of Stitch Fix from a "market perform" rating to an "outperform" rating in a research report on Monday, July 14th. Finally, Telsey Advisory Group reissued a "market perform" rating and issued a $6.00 price target on shares of Stitch Fix in a research report on Wednesday, June 11th. Five equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat.com, Stitch Fix presently has a consensus rating of "Hold" and a consensus price target of $5.67.

Stitch Fix Stock Performance

The firm has a market capitalization of $643.30 million, a PE ratio of -10.72 and a beta of 2.01. The company's 50-day moving average price is $4.36 and its 200-day moving average price is $4.14.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last released its quarterly earnings data on Wednesday, June 11th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.11) by $0.05. Stitch Fix had a negative net margin of 4.44% and a negative return on equity of 18.15%. The company's quarterly revenue was up .7% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.18) earnings per share. As a group, analysts anticipate that Stitch Fix, Inc. will post -0.44 earnings per share for the current year.

Insider Activity

In related news, major shareholder Working Capital Advisors (Uk) sold 1,370,931 shares of Stitch Fix stock in a transaction on Tuesday, June 10th. The shares were sold at an average price of $4.68, for a total transaction of $6,415,957.08. Following the sale, the insider directly owned 10,608,822 shares in the company, valued at $49,649,286.96. This trade represents a 11.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Anthony Bacos sold 90,000 shares of Stitch Fix stock in a transaction on Tuesday, July 22nd. The stock was sold at an average price of $5.00, for a total transaction of $450,000.00. Following the sale, the insider owned 829,966 shares in the company, valued at $4,149,830. This represents a 9.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 2,328,467 shares of company stock worth $11,261,260 over the last three months. Company insiders own 16.95% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Focus Partners Wealth acquired a new position in shares of Stitch Fix during the fourth quarter worth about $1,183,000. Susquehanna Fundamental Investments LLC acquired a new position in shares of Stitch Fix during the fourth quarter worth about $661,000. Geode Capital Management LLC increased its stake in shares of Stitch Fix by 7.2% during the fourth quarter. Geode Capital Management LLC now owns 2,459,014 shares of the company's stock worth $10,601,000 after acquiring an additional 164,089 shares during the period. Point72 Asset Management L.P. acquired a new position in shares of Stitch Fix during the fourth quarter worth about $353,000. Finally, Nuveen Asset Management LLC increased its stake in shares of Stitch Fix by 14.8% during the fourth quarter. Nuveen Asset Management LLC now owns 1,985,413 shares of the company's stock worth $8,557,000 after acquiring an additional 255,508 shares during the period. 71.04% of the stock is currently owned by institutional investors and hedge funds.

About Stitch Fix

Stitch Fix, Inc sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc.